MicroStrategy Buys 1,070 BTC, Set to Raise as Much as $2B by Offering Preferred Stock

MicroStrategy Increases Bitcoin Holdings for 9th Consecutive Week, Unveils $2B Preferred Stock Offering

MicroStrategy (MSTR) has continued its ongoing bitcoin buying spree, marking the ninth consecutive week of purchasing the cryptocurrency, and reinforcing its position as the largest corporate bitcoin holder.

During the week ending January 5, the company acquired an additional 1,020 BTC for $101 million, raising its total bitcoin holdings to 447,470 BTC.

As part of its customary practice, Executive Chairman Michael Saylor teased the announcement on X, revealing that the average purchase price for the latest bitcoin batch was $94,004, which brings the overall average to $62,503 per BTC.

After experiencing a significant drop from its November 21 high of $543, MicroStrategy saw a positive shift in its stock price on Friday, gaining 13%. The stock was up 2% in pre-market trading, hovering around $353.

Alongside the bitcoin purchase, MicroStrategy disclosed plans to raise up to $2 billion through a preferred stock offering. This new offering is separate from the company’s previously announced “21/21 Plan,” which intends to raise $21 billion in equity and $21 billion in fixed-income instruments.

The preferred stock offering will hold priority over MicroStrategy’s Class A common stock and may feature convertibility into common stock, dividend payments, and provisions for the redemption of shares. While the final terms and pricing of the offering have yet to be decided, the company anticipates that the offering will take place in Q1 2025. The capital raised will be used to acquire additional bitcoin.